Vection Technologies has secured a $2.6 million contract to co-develop SAFE-XR, an AI-powered safety compliance platform using augmented reality and wearable tech for industrial inspections in Italy.
- Signed $2.6m agreement with Area12 Consulting for AI-driven safety platform
- SAFE-XR integrates smart glasses with real-time voice AI and AR overlays
- Second deal with Area12, expanding on prior $0.5m Algho license agreement
- Includes perpetual AI license and three years of support and maintenance
- Phased revenue recognition planned through FY26 with renewal options
Strategic Expansion in AI and XR for Industrial Safety
Vection Technologies Ltd (ASX, VR1) has announced a significant $2.6 million agreement with Area12 Consulting to co-develop and implement SAFE-XR, an innovative AI-driven safety compliance platform tailored for a major industrial client in Italy. This deal marks a deepening of the partnership between the two companies, building on a previously disclosed $0.5 million annual license agreement for Vection’s Algho AI software.
SAFE-XR leverages the convergence of artificial intelligence, augmented reality, and wearable technology to digitise and streamline industrial safety inspections. By integrating smart glasses equipped with Algho’s AI-powered real-time voice interaction and contextual overlays, field operators can conduct hands-free audits with guided checklists and remote expert collaboration, enhancing both efficiency and accuracy.
Technology That Transforms Compliance Workflows
The platform’s use of emotional intelligence to adapt support based on user behaviour and environmental context represents a sophisticated leap in AI application within industrial settings. Operators receive natural language prompts and AR overlays that simplify complex regulatory compliance tasks, reducing the need for on-site experts and minimising human error.
Vection’s perpetual license for Algho AI, combined with a three-year support and maintenance commitment, ensures the client benefits from ongoing innovation and reliability. The phased revenue recognition across FY26 reflects a structured delivery approach, with the potential for contract renewal beyond the initial term.
Implications for Vection’s Growth and Market Position
This agreement not only underscores Vection’s growing expertise in AI-driven industrial automation but also validates its scalable B2B2C enterprise model. The collaboration with Area12 Consulting signals strong partner confidence and positions Vection at the forefront of compliance technology amid increasing global regulatory demands.
Managing Director Gianmarco Biagi highlighted the strategic importance of this deal, describing SAFE-XR as a transformative solution that makes industrial safety management more intelligent, efficient, and humane. As Vection continues to expand its footprint across Europe and beyond, this contract could serve as a blueprint for future AI and XR deployments in regulated industries.
Bottom Line?
Vection’s SAFE-XR deal signals a promising step toward AI-powered industrial safety becoming mainstream, but execution and client adoption will be key to sustaining momentum.
Questions in the middle?
- Who is the unnamed industrial client in Italy, and what sector do they operate in?
- How will Vection manage scaling and support for the SAFE-XR platform beyond the initial three years?
- What are the potential barriers to broader adoption of AI and XR technologies in industrial safety compliance?